On June 1, 2021, Company Y purchased a new machine on credit. The total payment, which includes the principal and interest, will be due on June 1, 2023. Assuming effective interest rate of 10%, the cost of the machine would be the total payment multiplied by which of the following time value of money concept?

• A. Present value of $1.
• B. Future amount of $1.
• C. Future amount of annuity of $1.
• D. Present value of annuity of $1.